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NXP Semiconductors (NASDAQ:NXPI) shares slid more than 8% in pre-market trading on Tuesday as a surprise leadership shakeup eclipsed stronger-than-expected Q1 earnings.
CEO and President Kurt Sievers announced that he will step down at the end of 2025, with Rafael Sotomayor taking over as President immediately and stepping into the CEO role on Oct. 28. The company emphasized that Sievers' decision was personal and unrelated to strategy or performance.
Sotomayor, a longtime executive at NXP, has been closely involved in steering its business in key markets like automotive and industrial IoT. We are confident he is ideally suited to lead NXP, said Chairwoman Julie Southern.
In the March-ended quarter, NXP posted adjusted earnings of $2.64 per share on revenue of $2.84 billion. Though revenue dipped 9% year-over-year, the results came in ahead of analysts' expectations of $2.61 per share and $2.83 billion in revenue.
Automotive sales fell 7% to $1.67 billion, while industrial and IoT brought in $508 million. Mobile came in at $338 million, and communications infrastructure dropped 21% to $315 million. Adjusted gross margin stood at 56.1%, with operating margin at 31.9%.
For Q2, the company expects adjusted EPS between $2.46 and $2.86, and revenue in the range of $2.8 billion to $3 billion.
This article first appeared on GuruFocus.